Advice on starting a business: getting clients

Question

I'm currently working as a developer at a web development agency, but I've long aspired to run my own business. I disagree with present management, and feel I could do infinitely better.

I've done many business-like things before - organized events, run a very large and successful website, some publishing. I've been saving up, and have enough money to get me by for a 3-5 months.

My business will be a one-man show to begin with, until I can build up a roster of clients, at which point I'll hire others only if absolutely, 100% necessary.

I'm going to work with a graphics design freelancer, who will come up with site designs (if I feel it's out of my scope) - my main focus will be backend development. It's basically what I do now, but working for myself, cutting out the middle man, without the waste and depression.

I have a fairly good plan of action for getting clients - I have a marketing budget, and I'll provide a "client information pack". But I was hoping to hear from other one-man, or small development shops their advice on getting clients.

I intend to leave my job this month, possibly next, and needless to say, I'm a little worried. It's that hurdle of building up a client list that I'll have to overcome, and I just want to know I'm doing all that I can.

Thank you!

Answer 1

I suggest you ask this kind of question on a business oriented forum rather than a programming one. Try the Business of Software where many one man outfits discuss these kinds of issues.

Answer 2

While not web specific, here is some advice on how to Sell yourself.

Answer 3

Do you have a non-compete with your current agency?

If not, you could see if some of the clients enjoyed working with you and contact them after you've been on your own for a while. I would not recommend contacting anyone right away... there should be a clean break of several months.

If you did sign a non-compete, I would recommend sub-contracting through other consulting companies to pass the time until you are able to contact those old clients again (after a year, etc.).

Do not burn the bridges with your current agency or do anything you agreed not to (e.g. violating a non-compete). It's bad for your business.

Answer 4

Land your first client before you leave your current job. Don't spend the marketing budget until you have a really clear idea on where it will have an effect, or you'll just waste it. If you are a one man show to start with you only need a single project to get rolling. Be careful of approaching your current clients, that is a route to litigation with your current employer.

Answer 5

Personal relationships will be 10x more productive than advertising. Unless you signed a non-compete or somesuch, do not at all be afraid to keep your current company's clients' phone numbers and contact them later on. If they're happy with the crappy management there, then they'll stay. If they decide to leave them and go with you, then that company should have worked harder to keep them.

Starting now, your aim should be to connect with people. Keep up with local techy events. Don't sell yourself yet; just make friends. Find out what people do for a living and gauge whether they'll need web dev. Get their cards. In a month or two when you quit, call them up and let them know the good news about your new business.

I can't stress how important personal relationships are.

Answer 6

IF you don't have any current clients, consider doing some kind of free work. Write something and open source it. Develop a portfolio of things you can show that are all yours.

Answer 7

I currently run a one-man (mostly) software development shop, however, at this time I am still working a day job as well. Granted my company is making as much money as my day job.

I agree VERY heavily with the comment about establishing customers first. One thing with running your own shop is that even if you land a nice project with a big client right out of the gate, it isn't something where people are paying you every Friday, or every other Friday. Typically you will be doing work on a project basis, with upfront and end of game payments, unless you are going to try to go the route of just loaning yourself out to one client at a time. THis will create a cashflow crunch if you are not careful, and doing a bit of pre-work to know that there is money there is a good idea.

If you have a marketing budget that is great, but be 100% sure that BEFORE you spend it you take the time to get expert advice on marketing. Other people in the industry that have done it before, AND maketing people. This is a key element as marketing success is highly dependent on the quality of materials put out there, but again be 100% sure that you know WHAT you want to market before you start.

Also, be sure to choose a good business name and logo, and ensure that you form your business the right way the first time, considering the different tax and other benefits of each type of business structure. FInd yourself an accountant and talk with them about it BEFORE you start, again, simple business items that if you haven't had to do it before are items that you must really consider to be truly effective, and in all reality it does tie into WHO will do business with you. Some organizations like seeing "Inc" in a company name that type of thing.

I think I'm digressing the point a little, so I'll leave it at this, but if you want to talk more, my contact info is in my profile here.

Answer 8

(1) read guerilla marketing, and make a budget and plan; great advice in here on networking, always selling, client searching, et al

(2) get clients on the side first, treat as moonlighting

(3) network, get references, get referrals, but be mindful of your non-compete restrictions

(4) only quit day job when side-job income meets living expenses

if it's just you (i.e. no family to support) you can "go for it" with a higher-risk strategy with fewer repercussions, but here's a list of things not to do:

(1) do not finance your operation on a credit card

(2) do not burn any bridges; your former employer (when the time comes) may be happy to contract with you

(3) do not accept jobs you are not comfortable with just because they're there; saying no to a customer that doesn't fit is a good thing in the long run as it prevents the kinds of conflicts that can ruin an up-and-comer's reputation

(4) do not undersell yourself; customers that care only about the price are not good candidates to build long-term relationships with, and that is the key to establishing a successful business in the long-term

(5) never rely on a single client for all of your income; always have at least two clients, in case something goes wrong

good luck!

["being self-employed means you only work a half-day, and you get to choose whether it's the first 12 hours or the second 12 hours"]

Answer 9

Don't quit without having some work aligned. A lot of one-man shows I know started working at a firm, networked and developed personal relationships with the firm's clients, and spoke to them about their move. Since they did a great job for the clients, the networking opened up doors to other opportunities.

However, if such a relationship doesn't exist, I would follow y0mbo's advice and wait some time before contacting anyone.

Most important of all, do not burn bridges. Again, personal relationships are key. Leave your current job on good terms. I know a number of people who used to work for my firm, but keep in close touch for business contacts and advice. They also tend to leverage that relationship for common business opportunities.

Answer 10

the fact that you're asking this question kinda of feel like you lack confidence or a bit unclear of what you want. You're starting a business bcoz the current management is pissing you off. Just switch to another job and learn more about how they actually get their clients if you haven't learn that already @ your current job.

otherwise, try to get a client or two before you quit. Do it as a side project for a start : that's a good way to balance risks and the opportunity to gain business & management skills until you really gain momentum to do it as full time job.

Do you know how to incorporate a company ? Get all these information about taxing, accounting clear b4 you start. Some companies refuse to give you work unless you have a registered company.

3-5 mths savings is not enough to cover your ass. **You will have delayed payments for your works and even clients who refuse to pay for the work you've done : chasing them up comes at a cost. **

How to get client ? 1. most clients I've got come from referrals. let your friends, ex-colleagues, ex-boss' clients do your marketing. Talk a lot about what you do. How I initially started by doing websites for free for some friends and this paid off later when they brought me clients.

For your first clients, dont charge a lot. clients also bring new clients.

Showcase your work.( i guess you've already thought about all this, right ? )

My Advice : Find another job and learn more about how the market works.